Suppose That a Book Publisher Sells a Textbook for $150

question 77

Essay

Suppose that a book publisher sells a textbook for $150 each to its domestic distributor.The same publisher sells the same edition of the textbook to a distributor in Thailand for $85 since the affordable prices by Thai students may be much less than in the domestic market.The textbook finds its way back into the domestic market since the Thai distributor sold it back to another marketer who sells in the domestic market for $85.What is this type of pricing known as,and what are the consequences of such transactions to global marketers,if any?

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Definitions:

Whiskey Tax

A tax imposed on distilled spirits, notably whiskey, historically significant for inciting the Whiskey Rebellion in the United States in the late 18th century.

Pinckney Treaty

A 1795 agreement between the United States and Spain that defined the borders of the United States with Spanish colonies and granted the U.S. the right to navigate the Mississippi River.

Second Great Awakening

A Protestant religious revival movement in the early 19th century United States, which spurred the growth of social reform movements, such as abolitionism and temperance.

Whiskey Rebellion

A tax protest in the United States in the 1790s, during the presidency of George Washington, triggered by a tax imposed on distilled spirits.